Complete guide to opening a company in Hong Kong with a guaranteed bank account

Hong Kong is an ideal place to start a business because of its dynamic business environment, political stability, and access to the global market. The city's strategic location gives entrepreneurs easy access to both mainland China and the rest of Asia, making it an excellent starting point for businesses seeking international success. In addition, Hong Kong has one of the most efficient and well-developed financial markets in the world, as well as a highly skilled and talented workforce. This means that startups can easily find investors, professionals with specialized knowledge, and suppliers ready to help them get off the ground.

Why choose Hong Kong as a starting point for your business?

Many French entrepreneurs and entrepreneurs of other nationalities choose to set up a company in Hong Kong. There are 4 important factors that encourage them to take the plunge:

1. A strategic location;
2. The ease of incorporating a company;
3. An attractive and advantageous tax system;
4. A dynamic and motivated workforce.

How can you build your empire by setting up a company in Hong Kong?

Learn the basics of a Hong Kong company's structure

When starting a business in Hong Kong, the most important thing to consider is the legal structure you will choose. It will help you manage tax regulations and business practices. In Hong Kong, there are 4 legal structures available when setting up a company:

• LLC (limited liability company);
• Sole proprietorship (sole proprietorship with limited liability);
• Partnerships (relationship between partners);
• Foreign company office (foreign company's headquarters).

The LLC remains the most widely used structure in HK. It carries less risk because this type of company protects its assets against risks and liabilities.

Build an image in Hong Kong

Defining the type of business you want to start will help you focus on the various factors that contribute to your company's development. To build your reputation in the region, you must first choose a name that best represents your business. This name can be Chinese or English, or both, as long as it is unique. You will then need to register it with the authorities.

Finance your business project

Once your company has been incorporated, you can move on to opening a business bank account in Hong Kong. To do so, you will need to provide your company's registration documents. Above all, do not forget to prepare all supporting documents in advance, such as audited financial statements, a detailed business plan, contracts and agreements with your customers and suppliers, as well as invoices.

A safe, secure, and competitive banking service

A quick overview

Hong Kong has more than 71 global banks and records foreign exchange transactions worth 274.6 billion dollars every day, which is one reason it is at the heart of a global financial center.

Moving away from the traditional approach

Thanks to the internet and the explosion of digitization, most companies have abandoned traditional methods, prompting many Hong Kong banks to enter the virtual banking sector.

What are virtual bank accounts and fintech accounts?

For those looking to open a bank account in Hong Kong, there are several alternatives to consider. One is to use an online account, which is becoming increasingly popular because it allows users to access their accounts from anywhere in the world. Another option is to open a virtual bank account, which offers similar benefits but does not require a physical presence or administrative formalities. Finally, some banks offer international accounts that allow customers to transfer funds from other countries to their accounts in Hong Kong. Whatever option is chosen, it is important to ensure that the selected bank has strong security measures and reliable customer service, so that customers feel safe when using their accounts.

Online banking: opening a bank account in Hong Kong

Preparing the banking application

Complete the account-opening application available online and send a scanned PDF copy of the required documents with your signature. A bank adviser will then contact you to schedule a video interview to verify your application and identity. For certain banks such as HSBC, ICBC, Bank of China, Citibank, and other Hong Kong institutions, you will be asked to provide the following documents:

• A physical address in Hong Kong;
• The company's director must hold an HK identity card or work visa;
• Your company's registration documents;
• A certified copy of your company's certificate of incorporation.

If your bank account application is rejected, you may request another appointment to have your application reviewed a second time. Some banks offer this option.

What is KYC?

"Know Your Client" is a procedure implemented by banks to assess an application and improve the likelihood of profile acceptance. The following documents must be provided:

• A personal KYC certificate;
• A certified copy of the passport of all directors, shareholders, and beneficiaries who own 10% or more of the company;
• Bank references.

How long does it take to open a bank account in HK?

On average, it takes 7 to 20 business days to obtain an appointment with your chosen bank in Hong Kong. If you wish to open an account with a local bank, the beneficial owners, business owners, shareholders, and directors must be physically present.

Merritt Asia's mission

Merritt Asia has more than 20 years of experience in the Hong Kong market; we incorporated our first company in 1998. We also act as Company Secretary, a mandatory appointment for all companies incorporated in Hong Kong. We can help you with your incorporation by making the process easier with traditional or virtual banking services. For more information, you can contact us at suppport@merritt.group.